Taiwan performs a vital function within the AI chip revolution and the worldwide semiconductor trade, the chief govt of the Taiwan Inventory Alternate instructed CNBC in an unique interview.
Sherman Lin, chairman and CEO of Taiwan Inventory Alternate Company attributed the sturdy positive factors on the Taiwan Weighted Index to “the AI revolution.”
“It’s simply because [of] the excessive demand of the high-end chip, and likewise the server provide chain. That is why our inventory market goes up,” he mentioned.
The Taiex has risen 27.93% within the final 12 months, however gave up some positive factors on Friday after most main markets within the area sank amid rising Center East tensions.
A lot of Taiwan’s dominance within the world semiconductor trade may be attributed to Taiwan Semiconductor Manufacturing Co, the world’s largest contract chipmaker that produces superior processors for shoppers like Apple and Nvidia. TSMC is the primary producer of Nvidia’s highly effective AI processors.
“I feel this can be a lot of attraction for buyers … So it means, truly, Taiwan performs [a] very essential function in AI provide chain and likewise the semiconductor trade,” mentioned Lin.
Taiwan’s chip dominance
In 2023, Taiwan led superior chip manufacturing expertise, together with 16- or 14-nanometer and extra superior processes, with 68% world capability share, based on TrendForce knowledge. This was adopted by the U.S. (12%), South Korea (11%), and China (8%), the information confirmed.
Taiwan additionally held almost 80% market share in excessive ultraviolet technology processes, resembling 7-nanometer and extra superior expertise, mentioned TrendForce. The smaller the nanometer measurement, the extra highly effective the chip is. EUV instruments are vital within the manufacturing of the world’s most superior processors.
“We’ve superb fundamentals of ICT industries. So we will have the power to facilitate, leveraging the success of the ICT and expertise industries, new financial system enterprise,” mentioned Lin.
Quake and geopolitical dangers
Earlier this month, Taiwan was hit by its strongest earthquake in 25 years. TSMC mentioned development websites have been regular upon preliminary inspection, although staff from some fabs have been briefly evacuated. These staff subsequently returned to their workplaces.
“Taiwan reveals superb resilience … I perceive that some listed firms that report back to the TWSE – that they had little or no influence on their productions,” mentioned Lin.
“The sort of the problem for Taiwan is the testing for our enterprise continuity plan. We truly did fairly properly. And we refreshed, we responded actually shortly. So you possibly can see within the capital market, you possibly can see the adjusted rebound fairly quickly,” mentioned Lin.
“Proper now, it is nonetheless within the uptrend within the capital market after the earthquake.”
On the result of the U.S. elections and navy conflicts, Lin mentioned such conditions “will all the time have an effect on some capital markets” in addition to the Taiwan market.
“However [as] you possibly can see, it can return to the basics. So I feel Taiwan has good fundamentals, [has] resilience and [responds] shortly. I’m fairly assured about our capital markets,” mentioned Lin.